Akin Advises Ad Hoc Group of Creditors on $4.4B Digicel Restructuring
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(London) – A multidisciplinary Akin team has advised an ad hoc group of crossover creditors to the Digicel Group (Digicel) in relation to two complex transactions including: (i) the comprehensive recapitalisation and comprehensive financial restructuring of over $4.4 billion of funded indebtedness; and (ii) the complex distribution of Digicel Group Holding Limited’s assets among existing creditors, each implemented pursuant to a Bermuda scheme of arrangement.
Digicel is the leading provider of mobile phone networks and home entertainment services in 25 markets across the Caribbean, Central America and Asia Pacific.
The scheme of arrangement of Digicel’s ultimate parent company, Digicel Group Holdings Limited (DGHL), closed on November 14, 2023 and entailed creditors’ existing debt instruments being exchanged for cash payments and new limited recourse private placement notes. Holders of the new notes will be entitled to receive distributions from all future asset realisations by DGHL until all such assets have been released and DGHL can be liquidated on a solvent basis.
The schemes of arrangement for Digicel’s operating business, of Digicel Limited, Digicel International Finance Limited and Digicel Intermediate Holdings Limited closed on January 29, 2024. These schemes entailed certain creditors equitizing a substantial portion of their existing debt instruments. The equitization, along with a broader refinancing and extension of other debt instruments in the group’s capital structure, resulted in Digicel’s funded indebtedness being reduced by $1.7 billion.
The Akin team was led by financial restructuring partners James Terry and Emma Simmonds with assistance from partner Emma Butler, counsel Caoimhe Kennedy and Patrick Mackenzie, and associates Ifrath Hussain and Tom Marr. Additional advice was provided by corporate & finance partners Mark Mansell and Vance Chapman with senior counsel Tony Barnes, counsel Colin Kavanaugh and associate Kelvin Mahal.
Akin is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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